It looks like IE 7, better known as Longhorn, will support current standards like XHTML and CSS. If you checkout first looks at next version of Visual Studio, you`ll see that target schema list now includes XHTML 1.0 (all three flavors). For comparison, current version (2003) goes only up to IE 5.0.
Further more, MS promises that all code Whidbey would generate will be fully XHTML compliant and it will meet accessibility guidelines. More over, it will have built-in validators for both with error explanation.
Other features include Tag Navigator (looks very similar to one seen today in Dreamweaver), better template editing (those grids will finally be usable) and (yes! give us mercy!) they don’t enforce the use of FrontPage Extensions.
Along with promised feature that it will not touch existing HTML code, this will finally be usable Microsoft product for web development.
We only have to wait several years and IE will be where Mozilla, Safari, Opera and other modern browsers are today. Yipi.